Coal India ups non-coking coal prices, expects to earn Rs 64 bn in Q4

Following the revision of wages of around 300,000 workers in the company, it faces an outgo of an estimated near Rs 60 billion

Coal India (CIL) has raised non-coking coal prices by an average of nine per cent to stave off the impact of increasing wages of around 0.3 million employees.

This is expected to cover the increased expenses, while providing the company headroom to step up capital expenditure for mining operations.

CIL’s annual expenses increased by an estimated Rs 64 billion after it decided to revise wages for executive and non-executive employees. While it has provisioned around Rs 27 billion for the higher wages, it still faced nearly 60 per cent cash crunch.

Company officials were of the view that the increase would